What’s the secret behind the success of any franchise business? It’s all about making a foolproof business plan and staying committed to it. A business plan outlines the expectations of a business and makes strategies to navigate through the hurdles you may face. A franchisor needs to be an astute businessman who knows how to operate a business and make it profitable in a short span of time. Let us tell you, there’s a lot of legwork involved while making a business plan. You need to do a lot of research work. As a franchisor, you need to craft a rewarding business plan and communicate the same thing to your franchisees. In this article, you’ll get step-wise guidance to devise a suitable business plan for your franchise business.
Be it for education franchise, restaurant franchise or clothing franchise, a business plan plays a significant role in making it successful. You just need to set goals and think critically to achieve them. Also, you can link with leading businessmen and ask for suggestions. There are many books as well that can help you design the best strategy for your franchises. But, it’s hard to read all those books and make a decision. To make things easy for you, we have penned down a step-wise guidance that can aid in thriving your franchise business.
Here we have outlined some aspects that you can consider while making a business plan:
Describe the Purpose of Your Business
For sure, you have started a business by keeping certain things in your mind. Clear your mind and ask yourself why you started your business. Note down all business objectives and think about how fulfilling those objectives can make your business successful. So, flex your mind and set achievable targets for your business. Also, communicate about those targets with your staff. You can motivate your staff to discuss their ideas with you.
Note Down Details of your Products/Services
Take a pen and paper then write down the details of the products/services your business is providing. Describe the qualities of your product and see how your product is unique. Moreover, determine what is the demand for your products/services in the market. It can help you think of marketing strategies that can boost the sales of your products/services in the market. Make sure you are providing high-quality products/services at reasonable prices to your customers.
Effective Marketing Strategy
How can you make your target customers aware of your products and services? It is possible by doing an effective marketing strategy. It is the responsibility of a franchisor to dictate marketing strategy to his/her franchisees. As a franchisor, you need to do extensive research before making a marketing strategy. Also, you need to guide and support your franchisees in doing excellent local marketing of your goods and services. For influencing your customers, you can do advertising campaigns. It can aid in capturing the attention of lakhs of customers.
Make a proper FDD (Franchise Disclosure Document)
Do you know what a franchise disclosure document is? It is a document that will contain the details of your business and objectives. This document will also state the rights and duties of a franchisee. Many franchisors try to copy the FDD of other business houses. But, never try to do that. Sometimes what’s suitable for others is not suitable for you. So, analyze your business and make a franchise disclosure document that can help you achieve your targets. You can seek help from a professional while making an FDD.
Associate with Potential Franchisees
You need to associate with potential franchisees who can help you achieve your business targets. You need to make sure that your franchisees can help and are as passionate as you to run the business. Also, check whether they have skills to run a business or not. Note that you need to enter into a contract with franchisees who are honest and dedicated. Never link with a hard-headed franchisee because it may become hard for you to coordinate with them properly. Your business strategy for a franchise will work only when you are linked with adept franchisees.
Profit and Loss Forecast
How to ascertain the profit of a business? It is basically your sales minus your overheads and direct costs. So, estimate the sales your business can make. Also, calculate your direct costs and overheads. This way you can calculate the estimated profit your business can make in a period of time. Moreover, you can consider past records while making a suitable business plan for your franchise units. You need to ask your franchisees to submit financial reports of their unit regularly. This way you can analyze where to make improvements.
Hire Proficient Personnel
The success of a business is completely dependent on the people who are running it. These people are responsible for implementing your plans and decisions. So, hire personnel who are skilled enough to work in your organization. Also, make sure your staff is coordinating with each other. Check the CV of a person in detail before hiring him/her. This way you can recruit capable people for your business. Also, tell your franchisees to hire only adept staff for their organization. Note that the potential of your personnel decides the growth of your business. So, make sure you are hiring efficient employees.
The above points can help franchisors and franchisees in making the best business plan. However, there’s not any hard and fast rule that you have to follow the above tips only. You can choose to consider other aspects as well while making a suitable business plan for your franchise business. It is advisable to consider what your competitors are doing while making a suitable business strategy.